The rupee opened 18 paise higher at $ 73.07 against the US dollar on Tuesday in support of positive domestic equity.
In the interbank foreign exchange market, the local unit opened at 73.16 against the US dollar, then at a higher level of 73.07 against the greenback, an increase of 18 paise from its previous close.
The rupee had closed at 73.25 against the US currency on Monday.
On the domestic equity market front, the 30-share BSE benchmark Sensex was up 372.32 points to trade at 50,813.39, and the broader NSE Nifty rose 107.25 points to 15,064.15.
Meanwhile, the Dollar Index, which estimates the strength of the greenback against a basket of six currencies, rose 0.02% to 92.33.
“The US dollar rose against a basket of currencies on Tuesday morning in support of expectations of higher bond yields and rapid economic normalization from the epidemic,” Reliance Securities said in a research note.
However, high crude oil prices and a strong US currency may limit appreciation bias in the local unit, traders said.
Global oil benchmark Brent crude futures rose 0.78% to $ 68.77 per barrel.
Foreign institutional investors were net sellers in the capital market as they closed shares worth ₹ 1,494.49 crore on Monday as per exchange data.